Gold Prices Fall ₹5,318 in 4 Sessions

Gold prices in Mumbai have extended their decline for a fourth consecutive session on Friday, with persistent selling pressure weighing on the precious metal in domestic and overseas markets.

On the Multi Commodity Exchange (MCX), October gold futures fell by ₹896, or 0.56 per cent, to ₹1,58,100 per 10 grams. During intraday trade, the contract slipped as much as ₹1,085, or 0.68 per cent, to touch a low of ₹1,57,911 per 10 grams.

With Friday’s losses, MCX gold has declined by ₹5,318, or 3.25 per cent, over four consecutive trading sessions. This sharp reversal in the yellow metal has been driven by fading hopes of a US Federal Reserve interest rate cut, which has weighed on investor sentiment.

International gold prices have also weakened as investors await US Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium for clues about the interest-rate outlook. Spot gold declined by 0.5 per cent to $4,576.30 an ounce, while US gold futures dropped by 0.8 per cent to $4,629 an ounce.

The latest correction follows a strong rally earlier in the week, with investors assessing how the Federal Reserve’s policy trajectory could affect the US dollar, Treasury yields, and demand for safe-haven assets.

In terms of key technical levels, gold faces immediate resistance between ₹1,59,500 and ₹1,60,000, followed by ₹1,62,000-₹1,62,500. Immediate support is seen at ₹1,57,600-₹1,57,000, followed by ₹1,55,500-₹1,55,000. The Relative Strength Index (RSI) stood at 60.93, indicating that bullish momentum has cooled considerably.

The decline in gold prices is likely to have implications for investors and consumers in Mumbai, who have been watching the precious metal's movements closely. As the US Federal Reserve's policy trajectory becomes clearer, it is likely that gold prices will continue to be volatile.

The Mumbai market has also been affected by the decline in gold prices, with the Sensex falling by 394 points on Friday. The market has extended its losing streak to four sessions, amid broad-based selling.

Overall, the decline in gold prices is a significant development for investors and consumers in Mumbai, and it will be important to watch how the precious metal's movements unfold in the coming days.

The impact of the decline in gold prices will also be felt by the broader economy, as it can affect inflation, interest rates, and consumer spending. As such, it is likely that the decline in gold prices will be closely watched by policymakers and investors in the coming days.

In conclusion, the decline in gold prices is a significant development that will have implications for investors, consumers, and the broader economy in Mumbai. As the US Federal Reserve's policy trajectory becomes clearer, it is likely that gold prices will continue to be volatile, and it will be important to watch how the precious metal's movements unfold in the coming days.